The pair reached the support at 1.1125 and bounced off of it but it's possible this isn't the end of the move to the downside. The next support is at 1.1110, if EUR/USD manages to break below that level it may fall all the way to 1.1030.
Yesterday the EURUSD fell with a wide range and closed near the low of the day, in addition managed to close below previous day low, suggesting a strong bullish momentum.
The pair closed below the 10-day moving average however is still trading above the 50 and the 200-day moving averages that are acting as dynamic support.
The key levels to watch are: The daily resistances at 1.1555, other daily resistance at 1.1460, daily resistance at 1.1237, the 10-day moving average at 1.1223 (resistance), other daily support at 1.1097, and the 200-day moving average at 1.1025 (support).
The single currency recorded a second consecutive decline against the dollar on Monday. The euro justified the negative expectations and threw the pair downwards. As a result, both supports at 1.1191 and 1.1146 were broken. If bearish sentiment continue, currencies may test the next key level at 1.1085. The new week started at a price of 1.1238 as the euro retreated in the early hours of trading. Bottom of the day was hit at 1.1127 and the session closed with 25 pips higher.
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